28%
Capital gains tax in Portugal is charged on the sale of property or other assets at a rate of 28% for individuals and 25% for companies and non-residents. Residents are only taxed on 50% of their gains.
Can you live in Portugal tax free?
Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.
How is capital gains tax calculated in Portugal?
If the money from a sale is re-invested then only 50% of the net taxable income will be subject to capital gains tax. To calculate the taxable gain, you take the selling price, minus the acquisition costs, any costs incurred during the transfer of ownership, and also any property improvement costs that have incurred within 5 years of the sale.
What kind of tax do you pay on real estate in Portugal?
No withholding tax applies on capital gains and capital losses may offset capital gains only. Sale of real estate. Fifty percent of capital gains arising from the sale of real estate by tax residents in Portugal is taxed at progressive rates varying from 14.50% to 48%, in 2016.
How is pension income taxed in Portugal?
The first €4,104 of pension income is exempt from tax. Should the annual amount of the pension income be higher than € 22,500, per individual, special rules should apply potentially resulting in the same tax treatment as for employment income. Fees paid to directors have the same tax treatment as employment income.
How do you report a property sale in Portugal?
Any property transaction performed in Portugal must be reported to the Tax Authorities by the notary that executes the deed. This means that when you declare the sale on your tax return, the tax authorities already know of it, so if you fail to include this on your declaration, the taxman will be after you.
